Striking Boeing employees have been offered a 35% four-year settlement to try and end their industrial action, which has crippled the aircraft manufacturer. It is estimated that the strike costs the company $50 million per day.
The International Association of Machinists and Aerospace Workers (IAMAW), which represents 33,000 Boeing workers, announced that it received the “negotiated proposal” at the weekend and will vote on it on Wednesday.
Boeing employees have been on strike over wages since mid-September. The union demanded a 40% increase while the company only offered 25%.
Kelly Ortberg, the new CEO of the company, would be relieved by a settlement.
The proposed settlement, mediated by Julie Su, the US acting labour secretary, envisions a pay increase of 12 percent in the first year, followed by two annual increases at 8 percent, and then an additional 7 percent in the fourth. The settlement also includes an upgrade in worker’s pensions.
The union said that the offer was “worth your consideration” and only needed a simple majority.
The strike has not only affected Boeing’s finances but also delayed the delivery of new planes to some of its largest customers such as Ryanair, and harmed companies in its supply chains.
Kelly Ortberg, , the new CEO,, would be relieved to reach a settlement when Boeing releases its latest multi-billion dollar lossmaking financial results this week. The figures cover the third quarter.
He spearheads a 25 billion dollar refinancing for the company, which has suffered from operational and manufacturing issues, including those affecting the 737 Max, the largest volume aircraft aimed towards the short-haul markets.
Ortberg, it is reported, has also considered asset sales within the vast defence and commercial aeronautics group. The group’s interests extend to space and to new technologies. Boeing could be forced to exit certain sectors and programs, including the space industry.
Ortberg is said to have spoken with divisional and departmental leaders about the future – or not – of their respective units.
Ortberg, the new chief executive of Boeing, who replaced his disgraced predecessor Dave Calhoun eight weeks ago, is already on record saying that Boeing had spread itself too thinly. He told employees: “We must be clear-eyed regarding our work.” We must also focus our resources to perform and innovate in areas that are fundamental to who we are.
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